Organization study at Carborundum Universal Limited

4.1 SWOT ANALYSIS

STRENGTH

• Company owns mines in Gujarat and also a hydroelectric project in Maniyar.

This reduces the cost of processing raw material and production.
• The company treats the customer with respect and concern.
• CUMI is having a better organizational climate and manage the environment
effectively. The company grows in an accelerated manner with new products
and services.
• As it has been found that the major problems faced by new firms are power and
its cost to maintain, CUMI was able to counter the problem to an extent by
establishing a hydroelectric plant in Maniyar.
• The company has strong departments.
• CUMI has a policy that every year 6% of its total sales should be from new
products.
• R&D enables the company to have an edge over competition in the new product
development.
• EMD has a very good working environment. It has got professionally managed
personnel department.
• The company has got professional managed sales team with strong back up of
reputed dealers.
• ISO 9001 certification also help in obtaining some orders as well as maintaining
the standard of the company.
• CUMI has the ability to change according to the circumstances. When the cost
of production was rising, it decided to cut short the cost by reducing the labor.
• CUMI has high capital investment. It acts as an entry barrier for new firms to
enter to this field.
• CUMI has been in the field for more than half century. Hence it has deep
knowledge about the market.
• The company has to make strict rule regarding wearing of personnel protective
equipment's like safety shoes, helmets, goggles, gloves, jackets etc.

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Organization study at Carborundum Universal Limited

WEAKNESS

• The salinity of water has to be improved.

• The roads within the company are to be developed so that the men and material
can move easily.
• Promotion is based on seniority not on performance.
• As the significant financial decisions are taken at Head Office at Chennai, the
speed and efficiency of the branch is not satisfactory.
• No permanent employees have been recruited for the last few years.
• The plant entirely depends on KSEB for power supply therefore power failure
can affect the production.

OPPORTUNITIES

• The company has triplicate collaboration with companies in USA & UK. Hence
they can enjoy benefits such as access latest technology, management
techniques, etc.
• The company can introduce more of its product in the market.
• The company can produce new and improved products with less labor and
advanced technology.
• More mines have to be found out. Globalization and liberalization can make its
product globally acceptable.
• The company can employ the best brains from top business and technical
institutions for better working and management.
• Foreign acquisitions and merger makes it possible to oversee the market.

THREATS

• Chinese products threaten the company as it is cheaper.

• CUMI faces stiff competition from the world merger and local players into the
market.
• Power and other equipments are expensive.

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Organization study at Carborundum Universal Limited

• The demand for abrasive has fallen down because of industrial and economic
shutdown.
• Rise in the cost of essentials such as raw-materials, freight charges and
unavailability of raw-materials.

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